Benedict Stalder

How true is this statement ? Do my #VC #venturecapital friends agree? If it’s true then the VC’s who remain will have greater opportunity and will augment their investment thesis / models to adapt to the market . Thoughts ? See below. Source : trying to find . It’s previously forecast that up to 50% of venture-capital firms would exit the industry, and it said the “inferno” is spreading faster than it imagined, with 25% of active investors from 2023 having already vanished, as 40% of general partners having either canceled or delayed raising money for a new fund .

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VC Value Chain by Private Equity Insights #venturecapital #vc #vcmarket #startups #venturecapitalists

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Current status: listening to painful cover versions at breakfast. My ears hurt. ------------------- Please ❤️ Like, ♻️ Share and 💬 Comment to spread the word. ➕ Follow me, Marc Cohen, for deep yet concise insights into venture investing, startups, fundraising and AI.

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Book Review #33 | 2024: The Decision Book: Fifty Models for Strategic Thinking by Mikael Krogerus, Roman Tschäppeler Big picture: Ready reckoner for 50 decision making models to tackle questions / decisions Can be used as a concise reference book Review: Food for thought next time one takes a decision Most of them are well-known and one must have read them in business school Rating: 2/5 #thepowerofreading #bookreviews #decisions

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Should You Raise Funds from VCs at the Pre-Seed Stage? I have a clear stance on this: it's better to spend this time on execution. This is something I’ve emphasized in consultations over the past couple of weeks. Why? Because there are many funds out there that claim to invest at the pre-seed and seed stages. Founders compile lists of these funds, reach out, and - voila! They get a response, and even a call is scheduled. At this point, founders might think they’re close to securing the funds, but from the VC side, this is often just part of their deal flow gathering process. An associate will take the call, listen attentively, and tell you that you’re doing great and have an interesting idea. They’ll ask you to keep them updated on your progress. Then, they’ll put your startup’s info into a CRM, and if you’re lucky, they might check back in a few months to see if you have traction. Of course, it’s possible that you’ll captivate them and secure an investment. But in most cases I’ve seen, founders spend 2-3 months (or even up to 6) trying to raise funds from VCs, only to find that they could’ve spent that time on execution instead. With some initial traction, you’ll open the doors to a broader range of seed investors who are ready to invest in a project with proof of traction. If you have a stellar team and are a second-time founder with a successful exit, you likely don’t need this exercise, as you probably already have a line of interested investors - especially those who backed you before. As for whether you should raise pre-seed funds from angel investors and how to go about it - that’s something I can discuss in my next post. Show some unicorns 🦄 here if you’re interested!

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The average capital broker s*cks. So how am I disrupting the capital broker world with A Dream Called Rome Capital? By setting out to build an eco-system to broker capital for 0-100 mio ARR SaaS, AI or Platform companies. In 7 countries: 🇧🇪 Belgium 🇱🇺 Netherlands 🇫🇷 France 🇬🇧 United Kingdom 🇩🇪 Germany 🇩🇰 Denmark 🇨🇭 Switzerland Spanning 4 categories: 🟣 Venture Capital Firms 🟣 Private Equity Firms 🟣 Non-Dilutive Lenders 🟣 Business Angel Networks And what do I REALLY do there, when you'd come to me for help there? 1️⃣ Connect you via warm introductions to the right capital partners in 7 countries, according to their growth stage and size 2️⃣ Accompanying and guiding you on this journey, as founder(s). 3️⃣ By (optionally) creating the whole funding exercise, narrative and investor memo together, according to my validated templates. Now I noticed people don't like 1st line Capital Brokers, to say the least. They find that's intrusive and annoying. Often also seeing it as an indication that the founders can't represent themselves. Major red flag. The intrusive 1st line broker is a big NO. Capital partners want to meet and interact with founders first-line, without someone accompanying them or getting in the middle in any way. It also often leads to a misrepresenting of the founders, by making things appear differently than they are. If only it would be the ability of the founders to meet and deal with investors themselves. That's why we support founders and businesses 2nd-line ONLY. Because we get it. It's that simple. We're your soundboard and sherpa on the journey. Yet on a commission-only basis and in a non-exclusive way. So people are still free to continue their funding efforts themselves too outside the Capital partner network. And you only have to pay us when you get the money on your account, based on a success-based commission. I also go above and beyond to source capital partners outside the Capital Partner network, suitable for your dossier. People always say they find a lot of support in my advice, guidance and also 24-7 availability and being sincerely emotionally invested in the dossiers we broker. We don't just broker anything. We ONLY broker dossiers we believe in. And our Capital Partners know this, which is how we generate high-quality, low-volume leads, coming out of our 7 zones of operations. They also know we systematically contract top SaaS, AI and Platform businesses in the 7 countries, between 0-100 mio ARR proactively. Which enables us to generate leads they might miss or said no to a while back. I then take my red phone and call the right Capital Partners to present your dossier to and plead your case passionately - because I only broker what I believe in. Are you looking to raise funds - or are you raising? Always LOVE to help. If you're a Capital Partner, who wants to join our network of Capital Partners, and get such an occasional top lead for free, do let me know.

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🚩 22 investor red flags to look out for. 🚩 You deserve the best investors! But it’s easy to make a mistake. There are over 8,400* VCs in Europe alone. During fundraising you will meet many. And not all investors are created equal. They will all be selling themselves well. You will read and hear all kinds of superlatives. Spotting early red flags is essential. I’ve decided to help you out on this. 🚩 22 investor red flags to look out for 🚩 > Arrogant behavior > Highlife party culture mentality > No track record in your industry > Pressing you to make a decision > Slow response in communication > Slow in the due diligence process > No clear value-add besides money > Wanting to take >50% of the company > Very aggressive valuation negotiations > The VC worked only in financial services > Demanding lock-up exclusivity, during DD > Conflict of interest with other investments > No prior founder experience in the VC fund > Demanding unrealistic stake. Check trends > Wanting too many board seats or veto rights > Discouraging you to do due diligence on them > Not transparent in advance with LP constraints > No exploratory calls with your customers (if any) > Corruption proposals. Getting you into a scheme > Late for meetings and acting like nothing’s wrong > Bad feedback on them by their portfolio founders. > No transparency on process, criteria, decision-makers If you see any of these red flags, be cautious. Dig deeper. If things don’t look well, move on. It’s 8,400* of them in Europe alone. P.S. What red flags would you add? 🚩 Let's discuss in the comments. ⬇️ *According to Crunchbase

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MRL: How ready are you to serve your customers? If you’re a startup that actually makes things, you need to know about manufacturing readiness level. What number are you? Best Alex #startups #venturecapital #vc #entrepreneurs #founders

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What #Europeans get wrong about #venturecapital. It's all in this magnificent graph: 👉 Venture capital is one of the biggest reasons why the US has been economically more successful than Europe for the past 30 years. 👉 8 out of the 10 biggest companies in the world were fueled by venture capital in their early years (only 1 out of 10 twenty years ago!). 👉 Today, hardware companies are "VC material": they can scale, decide our future and return money big times (NVIDIA, TSMC, Broadcom). Thanks Dominique Mégret for pulling together the data for this chart!

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Wondering how to create an effective corporate innovation program that helps your company unlock its maximum potential? 👉 An interesting article from StartUs Insights InnovaticGroup. Create the Future Now innovaticgroup.com #InnovaticGroup #StratUs #Innovation #Digitalization #InnovationManagement #InnovationManager #CorporateInnovation

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👉An interesting overview #BusinessAngels #VentureCapital #LPs #GPs #Innovation #InnovationManagement #CorporateInnovation #CorporateStrategy #DigitalTransformation #StartUps #StartusInsights #InnovaticGroup InnovaticGroup. Create the Future Now

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How many investments should a VC portfolio hold? Can you tell me what the range and mean will be at 400 positions? I see this, and variations of this graphic, in several VC presentations on the topic of portfolio construction. The conclusion is always the same, “A VC fund should have N number of positions to reduce variance and have approximately the same mean.” N is usually the value to the far right when the data magically ends. Sadly, the analysis is incorrect. Regardless of data sets, the graphic will always look pretty much the same. A declining range that tightens around a mean. This is because as you select more positions from the sample population, the simulations will begin to match the population data until it is the population data.   When the portfolio number matches the sample population number, in this case 400, the range is zero, the mean equals the population mean, and the need for a sophisticated sounding “Monte Carlo” simulation evaporates. If you’re a VC manager, don’t be fooled by this analysis. If you’re a VC investor, don’t be fooled by nonsense masquerading as insight. At Ascent Energy Ventures we do things a little differently and that makes all the difference. *This graphic data is made up but closely resembles real graphics.

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Historic Roots of EU VC 👇 The #VC industry has a rich and fascinating history in #Europe. While today we see bustling VC hubs in London, Berlin, Paris, and Stockholm, the foundations of this industry on the continent are deeply rooted in the economic transformations of the mid-20th century. 1️⃣ Post-World War II Economic Boom The origins of European VC can be traced back to the aftermath of World War II. The devastating impacts of the war left many European economies in dire need of reconstruction and revitalization. During this period, Europe looked across the Atlantic to the United States, where VC was gaining traction. In the U.S., the success of early VC firms such as American Research and Development Corporation (ARDC), founded in 1946 by Georges Doriot, demonstrated the potential of investing in innovative startups. This inspired European policymakers and entrepreneurs to explore similar models. 2️⃣ Early Ventures and Institutional Support The 1950s and 1960s marked the beginning of formalized VC activities in Europe. Governments played a pivotal role in nurturing this nascent industry. During this period, European countries began to see the establishment of VC-like entities. These organizations were often closely tied to banks or government initiatives aimed at supporting SMEs. The goal was to foster innovation and economic growth through investment in new technologies and industries. 3️⃣ Influence of the 1970s & 1980s The 1970s and 1980s were transformative decades for European VC. The oil crises of the 1970s highlighted the need for economic diversification and innovation. In response, European countries began to liberalize financial markets and promote entrepreneurial activities more vigorously. During this time, we witnessed the emergence of independent VC firms 🎉. These firms began to mirror their American counterparts, focusing on technology and high-growth potential startups. 4️⃣ The Rise of Pan-European Investment The 1990s and early 2000s saw the rise of pan-European venture capital activity. With the establishment of the European Union and the introduction of the single market, cross-border investments became more feasible and attractive. The European Investment Fund (EIF), established in 1994, played a crucial role in catalyzing VC investments across Europe. By providing funding and guarantees, it supported the growth of the VC ecosystem and helped bridge the gap between different markets. 5️⃣ Modern Era Today, the European VC industry is a dynamic and integral part of the global startup ecosystem. The success stories of European unicorns like Spotify, Klarna and Revolut highlight the maturity and potential of the region’s VC landscape. Europe’s VC industry has carved out its unique identity. The emphasis on sustainability, social impact, and diverse market opportunities reflects the continent’s values and economic diversity.

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Pleased to share some insights into our latest fund SSV II 🛰 🌌 Following the same strategy as its original SpaceTech-focused venture fund, a top-performing fund for its vintage, SSV II aims to build a portfolio of c.30 companies. The Fund has already made nine investments. The 9 companies currently making up the SSV II portfolio are: 💫 Hubble Network – Internet of Things satellite constellation for connecting directly to billions of Bluetooth-enabled devices Delos Insurance Solutions – Space data-powered wildfire home insurance provider ATMOS Space Cargo – Space cargo return service for life sciences Auriga Space – Novel electromagnetic launch system Array Labs- 3D satellite imagery on a global scale Privateer Space - constellation of small SATs for in-Space Situational Awareness (SSA) Ubotica Technologies - Live Earth Intelligence (Space: AI) Renoster - Deep Transparency for nature-based carbon projects constellr - Space data-powered high-precision smart farming services Find out more👀 https://lnkd.in/eS_9w7c3

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Misalignment on exit expectations can lead to value-destroying friction between CEOs, boards, and investors. Regular exit talks - at least once a year -help to: •  clarify strategic objectives and align exit timing •  assess the business’s real value and define a compromise timeline •  review investment agreements and explore alternative exit strategies Regular and proactive exit talks foster trust, prevent wrong decisions, and maximize value for all stakeholders. Practical considerations for such exit talks are included in this article.  #ExitStrategy #ExitReadiness #BoardLeadership #CorporateGovernance https://lnkd.in/e-jsaJA7

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This graph is why we are building REFASHIOND Ventures: The Industrial Transformation Fund. More context in The World is a Supply Chain (Link: https://lnkd.in/ebTg5FU7?)

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𝐅𝐞𝐞𝐥𝐢𝐧𝐠 𝐨𝐯𝐞𝐫𝐰𝐡𝐞𝐥𝐦𝐞𝐝 𝐛𝐲 𝐭𝐡𝐞 𝐣𝐚𝐫𝐠𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐰𝐨𝐫𝐥𝐝? 🌐 I used to feel the same way, so I put together this resource to make sense of all the complex terms. 𝐈𝐟 𝐲𝐨𝐮'𝐫𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐛𝐨𝐚𝐭, 𝐭𝐚𝐤𝐞 𝐚 𝐥𝐨𝐨𝐤 𝐚𝐧𝐝 𝐬𝐡𝐚𝐫𝐞 𝐢𝐭/𝐫𝐞𝐩𝐨𝐬𝐭 𝐢𝐭 🔁 𝐰𝐢𝐭𝐡 𝐨𝐭𝐡𝐞𝐫𝐬 𝐰𝐡𝐨 𝐦𝐢𝐠𝐡𝐭 𝐟𝐢𝐧𝐝 𝐢𝐭 𝐡𝐞𝐥𝐩𝐟𝐮𝐥! For more insights into the venture capital world, don't miss my newsletter: https://lnkd.in/dkWf3f7N #VentureCapital #Startup #Entrepreneurship #Investment #Glossary #BusinessGrowth #VC #Newsletter #StartupSuccess

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💡 How Top VCs Like Sequoia and Andreessen Horowitz Calculate Their Average Check Size 💰 Ever wondered how the big players in venture capital determine their average check sizes? Kevin Jurovich breaks it down using a typical $100M fund. Here’s how it works: 1️⃣ Fund Size: Start with a $100M fund. 2️⃣ Management Fees: Subtract 2% annually for 10 years ($20M), which leaves $80M for investments after management fees. - Adjusted Fund Size (A - B) = $100M - $20M = $80M 3️⃣ Initial vs Follow-On Investments: About 50% of the fund is reserved for follow-on investments, leaving $30M ($80M - $50M) for initial investments across 20 startups. - 50% * $100M = $50M - Remaining Net Amount for Initial Investment = Adjusted Fund Size - Follow-On Investment = $80M - $50M = $30M 4️⃣ Average Check Size: For initial investments, this would come out to about $1.5M per company ($30M / 20 = $1.5M). 5️⃣ Strategic Follow-On Investments: VCs typically aim to invest $2 in follow-on rounds for every $1 in the initial investment. - Total Follow-On Investment = 20 companies * $1.5M * 2 = $60M - Adjusted Follow-On Investment (limited by available funds) = $50M 6️⃣ Adjusted Check Size: After factoring in strategic follow-ons, the average check size adjusts to about $1.25M. - Average Check Size = Adjusted Follow-On Investment / (Number of Companies * 2) = $50M / (20 * 2) = $1.25M 🎯 Key Insights: • Follow-ons don’t apply to all companies. • Fees usually drop after 5 years. • Stronger conviction means more investment in the best deals. Thanks to Kevin Jurovich for sharing these valuable insights! 🧐 Want to discover more great deals with like-minded investors? Join the Inovexus Deal Club! Comment “DEAL CLUB” below! 🚀 #startups #entrepreneurship #venturecapital #investing #finance #crossborder #inovexus #startup #VC #earlystage

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500 VCs and thousands of founders have already joined the movement! That's HUGE for European Startups, but no time to chill. 🚀 - Europe's risk-capital backed ventures create jobs at 3x the pace of the traditional market. - 8 of 10 of the world's most valuable companies were once VC-backed startups - The startups signing the EU Inc petition today have already more enterprise value, than the biggest player in Germany automotive and chemical industry combined in market cap. And they are just getting started. Yet lets be realistic, our industry won't collect 1 Million signatures needed for an official European Citizen Initiative, but we can do what startups do - get creative, re-invent distribution and create a step-function. Which founder, which VC, which KOF from your local ecosystem do we need on the petition? Please comment and tag.

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